NIB, the international financial institution of Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, has signed an ISK4.4bn (US$36m) 10-year indexed loan with the listed Icelandic real estate company Reitir hf. The loan will co-finance the conversion of two former office buildings into a nursing home and health care facilities in Reykjavik at a total project cost of ISK8.75bn.
“Reitir is expanding its operations and strengthening its role as a developer with a clear focus on building socially useful infrastructure,” said Guðni Aðalsteinsson, CEO of Reitir. “The two projects demonstrate how existing buildings can be effectively repurposed to meet demographic-driven demand for nursing homes and health care facilities in Iceland.”
Iceland has fewer long-term care beds per 1,000 inhabitants aged 65 or above compared to other Nordic countries. Estimates suggest that the number of available beds will need to double by 2040 to adequately meet future needs. The converted nursing home will house 87 residents.
The health care facilities, run by Clinic at Ármúli. will expand surgical capacity by approximately 50% compared with the clinic’s previous capacity by adding two operating rooms, two procedure rooms for minor surgeries, an expanded inpatient ward, and 28 offices for medical staff. The facilities, run by a privately owned healthcare clinic, will provide quicker access to non-urgent surgeries and specialist appointments and help ease pressure on the public health care system.
“In response to the challenges facing Iceland’s health care system, these investments will enable high-quality services for the Icelandic people,” said André Küüsvek, NIB president and CEO. “In addition, ensuring more efficient and timely access to nursing care will support municipalities in maintaining a positive fiscal balance.”
Press release: NIB finances nursing home and healthcare facilities in Reykjavik, Iceland – Nordic Investment Bank